Ayala Land Shifts Focus to Tenant Mix After Completing Major Mall Upgrades

Construction Phase Wraps, Leasing Push Begins

Ayala Land has closed the books on a two-year renovation cycle across four of its largest shopping centers in the Philippines. The upgrades to Glorietta, Greenbelt, TriNoma, and Ayala Center Cebu are now structurally complete, and the developer is turning its attention to reconfiguring the tenant roster inside.

Mariana Beatriz Zobel de Ayala, senior vice president for leasing and hospitality at Ayala Land, told analysts during the company's first-half results briefing in August that the priority has shifted to merchant recruitment. The goal is to align store concepts with the upgraded physical environment, she said.

Glorietta, which last underwent a major facelift in 2012, now features renovated cinema facilities and updated interiors. A new pedestrian park has replaced the former vehicle entrance at Glorietta 3. Some sections, including the food court, remain under construction.

Management has said the redesigned circulation routes at Glorietta and Greenbelt aim to improve navigation, a response to longstanding complaints about confusing layouts in the interconnected mall complex.

Rental Rates Climb in Upgraded Zones

In areas where Ayala has already swapped out or refreshed tenants, rental rates have jumped an average of 25%. Ayala Center Cebu, the most advanced of the four projects, is recording year-on-year rental growth of approximately 10%.

Anna Ma. Margarita Dy, Ayala Land's president and chief executive, cautioned that the full financial impact of the overhauls may take another two to three years to materialize. The company is betting that higher-quality retail environments will support sustained rent increases and stronger foot traffic over time.

Same-mall sales rose 7% in the first half of 2026, while visitor numbers increased 5%. Premium malls recorded 8% traffic growth, compared with 3% at core properties, indicating stronger demand in the higher-end segment.

New Tenants and Nightlife Concepts

Ayala has begun rolling out fresh retail and dining concepts across the renovated properties. At Greenbelt, the company recently soft-opened around 3,000 square meters of retail space in Greenbelt 2. The former Greenbelt townhomes are being converted into T:28, a nightlife-focused development.

TriNoma is receiving additional retail space as part of its reconfiguration. Greenbelt 1, the decades-old structure designed by National Artist Leandro Locsin and opened in 1982, was demolished and is slated for completion in 2028.

Beyond its flagship malls, Ayala is introducing international and regional retailers to its expanding portfolio. The Thai wholesale chain Makro has opened at Ayala Malls Arca South, which formally launched in 2026. Premium grocer Spinneys has entered Parklinks and San Antonio Plaza Arcade, while IKEA is set to anchor Gatewalk in Cebu.

Ayala Malls Arca South operates as a mixed-format retail development. The company is preparing a major mall opening in Nuvali in November, with Gatewalk targeted for December.

Capital Reallocation Toward Commercial Real Estate

The renewed focus on shopping centers comes as Ayala Land faces headwinds in its residential development business. Shopping center revenues reached PHP 12 billion in the first half of 2026, up 4% year-on-year. Excluding Alabang Town Center, which Ayala no longer owns, mall revenues grew approximately 9%.

Ayala sold its stake in Alabang Commercial Center Corporation to the Madrigal family for PHP 13.5 billion in December 2025. The property was subsequently acquired by Rockwell Land, controlled by the Lopez family. Ayala described the transaction as a way to free up capital for new commercial projects.

Capital expenditure on malls surged 62% to PHP 9.2 billion in the first half, while residential spending fell 24%. The shift reflects management's view that shopping centers offer better near-term growth prospects than condominium sales, which have slowed amid a buyer's market in Metro Manila.

The merchant replacement phase will test whether Ayala can extract higher returns from its upgraded assets. With rental rates already climbing and foot traffic trending upward, the company is positioning its flagship malls to capture more spending from middle- and upper-income consumers in the Philippines' key urban centers.